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Bad Credit and Filing BK help

New Visitor

Bad Credit and Filing BK help

Im filing BK7 this week. 


Because there has been no payment for a few months and most of my utilizations are over 100%, my 700 credit score has dropped to about 490.  My question is once the bad is discharged am I looking at a credit score boost of anything? 


Second, I tried to open a savings account at a local credit union to establish a secured share loan after discharge and received a letter stating that due to my credit score and amount of debt i was denied. So before persuing any other credit unions should I wait for discharge or what?


Last, I've read though a lot of the posts about reestablishing credit after BK.  If I'm burning cap1 for over 10grand in bk, what should be my first choice in a card after discharge?  credit one? can my wife add me as an authorized on her cap 1's?  will they allow that? 

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Frequent Contributor

Re: Bad Credit and Filing BK help

You should expect to see your score increase within a few months afer filing. The reason for this is your accounts at 100% utilization will no longer report a balance. I filed two months ago, do not yet have a discharge, and my FAKO (granted, not a FICO) is showing as 700. I'm sure my FICO is lower, but this is still an increase from a FAKO in the 500's.


As far as what card to apply for post-discharge, I would review HOW TO: From BK7 discharge to 700 in 24 months or less!. If you do not follow this plan, consider applying for a Capital One account after your credit report is updated. You'll find threads that suggest if you will be denied, you won't have a credit inquiry. If you get denied, try again 6 months after discharge. If denied a second time, look elsewhere.


Consider opening an account at Navy Federal Credit Union. Although there's a hard inquiry to establish membership, I don't believe anyone is turned down for bad credit. You may get turned down for fraud reported at another financial institution. Otherwise,  unless you really need another account now, consider waiting until after filing.





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